Harmonic Patterns

There are several interpretations of the Butterfly pattern structure. Unlike the Gartley pattern, the Butterfly pattern offers the possibility to enter long/short at new lows/highs. It’s because wave D of the pattern extends beyond the starting point of wave XA. The Butterfly pattern depends upon the B point as it defines the pattern’s structure and […]

The Gartley pattern is also called the ABCD pattern and is one of the most popular harmonic pattern. We have a five-points set up with the Gartley pattern labeled XABCD which follow specific Fibonacci ratios. The key ratio involved in the Gartley pattern are 38.2%, 61.8%, 78.6% and 100%. Gartley patterns that lead to the double […]

The Bat pattern is a popular harmonic pattern. It looks similar to the Gartley pattern. But uses different Fibonacci ratios. The most distinctive feature of this pattern is that point B doesn’t reach 50% Fibonacci retracement of the XA leg. And secondly, this particular pattern represents a deep retest of support / resistance. After that, a sharp reversal […]

The crab pattern looks very similar to the Butterfly pattern. Except that it has an incredibly long CD leg. This pattern is often followed by sharp and volatile price action. So it’s very important to anticipate higher volatility when executing your trades at the pattern completion point. Figure 1: Bearish Crab The price usually approaches the […]